HICKORY, N.C.--(BUSINESS WIRE)--July 21, 2008--CommScope, Inc., a world leader
in infrastructure solutions for communications networks, has initiated plans
to further optimize its global manufacturing network as part of the company's
goal to better utilize facilities, reduce costs and enhance its long-term competitive
position in markets around the world.
In separate actions, CommScope expects to consolidate certain antenna and
cable production within its Antenna, Cable and Cabinet Group and Enterprise
segments into other existing facilities. The changes as proposed, some of which
are subject to employee consultation processes, would affect the following facilities:
-- England: Microwave antenna operations at three locations in the
Stratford area would be shifted to existing Andrew antenna manufacturing facilities
or outsourced. This would result in closure of the Stratford, Bidford and Long
Marston locations.
-- Czech Republic: Base station antenna production in Brno would be
discontinued and moved to existing Andrew antenna plants or outsourced. In addition,
the connector, cable, and accessory assembly operations in Brno are under consideration
for relocation to other Andrew locations or outsourcing. Other operations in
Brno would not be affected.
-- Australia: Enterprise cabling operations in Brisbane will be discontinued
by early 2009, with production moved to other CommScope facilities.
-- Scotland: Machine shop operations in Lochgelly would be consolidated
into other Andrew facilities or outsourced. Cable re-roll processes and some
support functions also are being reviewed. Other operations in Lochgelly would
not be affected.
The proposed changes are expected to result in a net reduction of at least
85 employees across the company. In total, more than 700 existing jobs could
be affected by these planned actions, with the majority of these positions potentially
relocated to other existing company locations.
"We regret that many of our people may be impacted. However, we can
better serve and secure the long-term interests of our global employee population,
as well as our customers and shareholders, by reducing costs whenever possible
and improving utilization of our extensive capabilities in response to regional
market demand," said Brian Garrett, CommScope president and chief operating
officer. "Combined with our previously announced actions that affected
manufacturing locations in Belgium, Brazil and Italy, these proposed moves are
expected to enable CommScope to have a much more highly efficient and properly
utilized manufacturing footprint around the world. We remain committed to global
competitiveness and excellence in everything we do, especially serving customers."
The proposed changes at facilities in Europe are subject to completion of
the appropriate employee consultation processes. When plans are finalized and
approved later this year, the company will provide overall expected costs and
savings. The company would incur restructuring charges to support the changes,
but also anticipates significant benefits from these actions when fully implemented
by late 2009.
The savings from these new initiatives are incremental to the previously
announced intention to create $90 million to $100 million in merger-related
savings within two years of the December 2007 Andrew Corporation acquisition,
of which $50 million to $60 million are expected to occur in 2008.
About CommScope
CommScope, Inc. (NYSE: CTV)(www.commscope.com) is a world leader in infrastructure
solutions for communication networks. Through its Andrew(R) brand, it is a global
leader in radio frequency subsystem solutions for wireless networks. Through
its SYSTIMAX(R) and Uniprise(R) brands, CommScope is the global leader in structured
cabling systems for business enterprise applications. It is also the premier
manufacturer of coaxial cable for broadband cable television networks and one
of the leading North American providers of environmentally secure cabinets for
DSL and FTTN applications. Backed by strong research and development, CommScope
combines technical expertise and proprietary technology with global manufacturing
capability to provide customers with infrastructure solutions for evolving global
communications networks in more than 130 countries around the world.
This press release contains forward-looking statements regarding, among other
things, the announced global manufacturing changes, business position, plans,
outlook, integration, synergies and other financial items relating to CommScope
that are based on information currently available to management, management's
beliefs and a number of assumptions concerning future events. Statements made
in the future tense, and statements using words such as "intend,"
"goal," "estimate," "expect," "project,"
"projections," "plans," "anticipate," "should,"
"designed to," "foreseeable future," "believe,"
confident," "think," "scheduled," "outlook,"
"guidance" and similar expressions are intended to identify forward-looking
statements. Forward-looking statements are not a guarantee of performance and
are subject to a number of risks and uncertainties, many of which are difficult
to predict and are beyond the control of CommScope, and therefore should be
carefully considered. Factors that could cause actual results of CommScope to
differ materially include, but are not limited to, continued economic weakness
and uncertainties, the challenges of achieving anticipated synergies related
to manufacturing initiatives; delays or challenges related to removing, transporting
or reinstalling equipment; the ability to retain qualified employees and existing
business alliances; customer demand for our products and the ability to maintain
existing business alliances with key customers or distributors; competitive
pricing and acceptance of products; industry competition and the ability to
retain customers through product innovation; changes in cost and availability
of key raw materials and the ability to recover these costs from customers through
pricing actions; concentration of sales among a limited number of customers
or distributors; the risk that internal production capacity and that of contract
manufacturers may be insufficient to meet customer demand or quality standards
for our products; the risk that customers might cancel orders placed or that
orders currently placed may affect order levels in the future; continuing consolidation
among customers; possible production disruption due to supplier or contract
manufacturer bankruptcy, reorganization or restructuring; achievement of cost
reduction synergies expected from the acquisition of Andrew; significant international
operations; ability to integrate the CommScope and Andrew businesses; ability
to fully realize anticipated benefits from prior or future acquisitions or equity
investments; substantial indebtedness as a result of the acquisition of Andrew;
dependence upon key personnel; ability to integrate Andrew's systems of internal
control over financial reporting with ours; realignment of global manufacturing
capacity; purchase accounting costs; protecting or defending intellectual property;
ability to obtain capital on commercially reasonable terms; fluctuations in
interest rates; the ability to achieve expected sales growth and earnings goals;
the outcome of the TruePosition, Inc. litigations and regulatory changes affecting
us or the industries we serve. For a more complete description of factors that
could cause such a difference, please see CommScope's filings with the Securities
and Exchange Commission (SEC), which are available on CommScope's website or
at www.sec.gov. In providing forward-looking statements, CommScope does not
intend, and does not undertake any duty or obligation, to update these statements
as a result of new information, future events or otherwise.
CONTACT: CommScope
News Media Contact: Rick Aspan, +1 708-236-6568 publicrelations@commscope.com
or Investor
Contact: Phil Armstrong, +1 828-323-4848
SOURCE: CommScope, Inc.
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